But it's unlikely that the full cut will be passed on to borrowers -- banks may well say they cannot afford to pass on the move to customers, and around 51 per cent of UK borrowers have fixed-rate deals anyway. The cost of borrowing is now such that it doesn't make sense to pass on cuts to borrowers, according to a spokesperson for the Council of Mortgage Lenders.

How low can they go? According to the Graeme Wearden at the Guardian, UK interest rates haven't been as low as two per cent since the days of rationing during World War II and post-war -- they were 2.5 per cent in 1951.

Graeme Leach, the chief economist at the Institute of Directors, believes rates could drop below two per cent by this time next year. "The sooner we get interest rates down, the less is the risk of a long and deep recession."

What do you think -- has the Bank of England acted quickly enough to stave off recession?